Gold is a bad bet. Central banks have much more supply than there is demand for it. They will just continue to sell into these rallies. Imagine how much gold has been mined in the past 5 years.

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You can't possibly know that to be factual info, it's more of an assumption. Right now, GBP is proving to be SO unstable & perhaps righly so, that people that can read & have substantial savings are starting to put their savings into preciousl metals, I know that as I have spoken to dealers in the past & now, right now waiting time has increased to 6-8 days on silver supply & much longer depending on order size, that is BEFORE any media craze participation. Metals, like everything else, have gone, and perhaps still are, through stages of mass liquidations, hence prices are substantually lower from the highs, but here's the difference. Whilst it is very obvious that most sectors are in a bear phase (redemptions/liquidations), unlike stocks, real estate & currencies, precious metals are being accumulated right now, because there is real fear of losing money & not knowing where to park it. From a basic technical perspective - monthly charts for gold & silver are bearish (we know reasons for that), but now I am seeing their weekly charts showing very possible accumulation. I am already long Gold from $734.5 http://www.elitetrader.com/vb/showthread.php?s=&threadid=127353&perpage=6&pagenumber=125